The rationality of exuberance
Article Abstract:
Share prices have not performed well in spring of 1997, but over the long term they have performed far better than government bonds. They have tended to revert to a long-term average so risks have been lower than for holders of bonds, though shares are said to bring higher returns because of their high risk levels. Stocks are not a good short-term investment and a combination of high interest rates and low inflation would boost the performance of bonds in relation to shares.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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The fruitless search for value
Article Abstract:
There are a number of ways of valuing stocks and traditional valuations like dividend yields may not be helpful, according to Cornell University's Charles Lee. Equity returns and dividend yields may not be related. The intrinsic value of the Dow can be assessed by discounting the present value of expected returns for equity and subtracting equity costs. Current information is still no secure predictor of the future performance of the market.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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